By Ross Kelly
SYDNEY--Caltex Australia Ltd. (CTX.AU) reported a small rise in
first-half profit as a strong performance from its fuel-marketing
division was dragged down by another refining loss.
Australia's biggest listed oil refiner, 50%-owned by Chevron
Corp. (CVX), said net profit on a replacement-cost basis, which
smoothes out swings in the value of its inventories, rose 1% to 173
million Australian dollars (US$161 million). The result was at the
top end of the company's guidance for A$155 million-to-A$175
million given in June.
Operating earnings in the marketing unit climbed 8% and were
helped by higher sales volumes of diesel fuel to the mining and
marine sectors, in addition to more jet-fuel sales. The refining
business posted a A$65 million operating loss, as the company nears
the closure of its Kurnell facility in Sydney.
Australian refiners are struggling to compete with larger, more
efficient facilities in Asia, prompting Caltex to convert Kurnell
into a fuel-import terminal. The Kurnell closure procedure is
expected to start in October, Caltex said. The company also owns
the Lytton refinery in Brisbane, which it has pledged to keep
operational.
Net profit on a historic-cost basis, which includes the value of
its stockpiles, fell 17% to A$163 million. Caltex declared an
interim dividend of 20 Australian cents a share, up from 17 cents
in the prior corresponding period.
Write to Ross Kelly at ross.kelly@wsj.com
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